B.—l

LAND FUND, 1884-85. The Land Fund Account at the close of the year 1883-84 showed a balance of £80,447. The revenue received during the past year amounted to £160,969, of which £92,432 was for cash sales of land, and £68,537 for sales on deferred payments. The expenditure amounted to £209,485 ; so that at the beginning of the present financial year there was a credit balance of £31,931. PUBLIC WOBKS EUND, 1884-85. The balance at credit of the Public Works Fund at the end of March, 1884, was £488,912. From the instalments of the loan of one million negotiated in January, 1884, £389,000 came to credit after March of that year, and, from instalments of the million loan negotiated in January last, £845,000 came to credit before the end of March, 1885. There was also an amount of £100,000 from deficiency bills, authorized, to be issued last year in aid of the Public Works Fund, redeemable at the end of the present month; and we further obtained £500,000 of temporary advances. The total amount placed at credit of the Public Works Fund during the year 1884-85 was £2,327,025. The expenditure amounted to £1,336,727, leaving £990,298 at the end of March last with which to begin the year. In addition thereto we had the balance of the third instalment of the three million loan to receive, £155,000, also the new loan of £1,500,000 recently raised, amounting in all to £2,645,298: subject, however, to the redemption of deficiency bills, £100,000; the repayment of temporary advances, £500,000 ; and the advances to be accounted for in the hands of officers, £250,000. THE BUBLIC DEBT. The amount of the public debt on the 31st March, 1884, less the Sinking Fund Account, was £29,574,903. The amount of that debt on the 31st March, 1885, was £30,649,099. It was increased by fresh issues and conversions—the conversions from a higher to a lower rate of interest, of course, having a tendency to a larger principal amount but a less annual charge. The annual charge last year was £1,570,989, whilst this year it is £1,593,692, exclusive of interest on deficiency bills, and on the million and a half loan. The increased annual charge is to be accounted for by the interest on the additional million, and by £64,000, which, owing to the conversion operations, escaped coining into charge during 1884-85. In referring to this item last year I estimated it at about £50,000 only. On the other hand, there are reductions consequent on conversions. As we have not the particulars of the new issue of debentures to take up the converted drawing debentures, we estimate the interest for these under the old head, as also the sinking fund. Under the authority of " The Consolidated Stock Act, 1884," we have issued debentures to the amount of £108,800 to replace two amounts of £20,900 and £87,900, respectively, issued under the General Purpose Loan Act, which had fallen in for payment, and £3,000 under " The Nelson Loan Act, 1874." Early in January the third and last million of the three-million loan of 1882 was negotiated with excellent results. The average rate obtained was £99 10s. ld. for each hundred. Considering the quotation for consols and the Bank of England rate of interest ruling at the time, the price was exceedingly satisfactory. The million and a half loan authorized last year has quite recently been negotiated at a still better figure, namely, an average price of £100 6s. 3d. As consols are lower in price than in January last, this result must be considered still more gratifying, and a comparison with the rates obtained for other loans enhances the gratification. Honourable members are aware that, within a few days of each other, three loans, besides our own, were placed in the market, namely, those of Victoria, Queensland, and South Australia. It is impossible to tell the exact rate yielded by a loan from the selling price, because there is always included more or less of allowances in the shape of advantages of accrued interest and discount. I asked the Loan Agents to cable me the net results of the four loans, and honourable members will be pleased, whilst the pessimists amongst them will be surprised, to learn that the New Zealand loan fetched the highest price of all. This is the telegram received from the Agent-General:—" Net price, deducting interest, discount: Victoria, £99 4s. 3d.; Queensland, £97 3s. lOd.; New Zealand,

II